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Cerberus Sets Hospital Pact

Purchase of Massachusetts Chain Faces Hurdles; Health Overhaul Upside

Cerberus Capital Management struck a deal to acquire Caritas Christi Health Care, a large Massachusetts hospital chain, the latest in a spate of private-equity interest in the hospital business.

The New York-based buyout firm will inject $400 million into the hospital chain over time and assume roughly $430 million in debt and pension liabilities. Caritas, the second-largest hospital chain in New England with six Catholic hospitals in...